Benefits of Business Intelligence & Analytics Explained
Business intelligence refers to the sum of technologies and techniques used to collect, analyse, integrate, process, and present information for an industry-specific use. It is a technology-driven process that churns information into actionable business decision.
Industries recognised what is business intelligence and its importance in the early 20th century when they started to collectively mine and process information (like historical and current operation records) to predict future demands. With the advent of the World Wide Web in the 21st century, the process of gathering and processing data has become much more efficient, which made business intelligence a staple for all modern organisations.
Why do Businesses Use It?
Companies use business intelligence to identify, detect and monitor significant business trends and events and to design a strategy to adapt to the changing environment quickly. It brought a noteworthy change to the manufacturing industry.
Companies now have access to larger deposits of information, customer preference and opinions based on which they can generate new manufacturing and engineering business ideas. Availability of affordable credits in the form of loan for engineers also helps companies build the necessary infrastructure to acquire and process such information.
Companies also utilise business intelligence for the following reasons –
- To gain insight into consumer behaviour – BI allows an organisation to gain critical insight into current customer behaviour and consumer trends. For example, several large-scale industrialists have started manufacturing robots to tap into the growing market of automated manufacturing while workstation manufacturers are slowly progressing towards Type-C ports to match the changing electronics design. Understanding consumer demand, purchase patterns and keeping pace with the product development can significantly improve profitability.
- To process information – What is business intelligence is largely depicted by a collection of systems to process raw data into actionable information. BI tools can offer the crucial insight an organisation requires to plot future strategic plans.
- To improve efficiency – Business intelligence can significantly contribute to improve the efficiency of an organisation. It can create a streamlined system to share information across departments and cut down on time and cost. It can also eliminate the chances of role/duty duplication within a company and increase efficiency.
Engineering businesses can benefit from such techniques as these organisations often manufacture large volumes of parts for several types of machines. They can streamline their production and communication with the help of BI and generate new business ideas for mechanical engineers in India.
How to Implement BI in Manufacturing?
Integrating business intelligence packages for an engineering business requires following a series of steps to properly implement the process with the existing architecture. These include –
- Planning a goal – BI aids a business reach a particular productivity milestone and helps take decisions to meet both short and long-term goals. A company should identify what is business intelligence requirements and develop a strategy to benefit from it before implementing the system.
- Developing metrics – A company needs to establish their performance matrices after planning to ensure the data gathered and presented meet the organisation’s requirements. It is also necessary to measure the progress and efficiency of the business.
- Finding a technological solution – After determining a goal and setting the necessary matrices, a company needs to embed the necessary technology to collect and process the data.
Implementing the necessary technology for BI is one of the most expensive steps in the integration process. Engineering businesses can take a professional loan to pay for the upgrade instead of spending from their savings.
Business intelligence is one of the most important and useful tools used by organisations in the modern, competitive environment. It can provide a stable framework for any type, or size of the industry to develop and prosper in their field.